Mitchell Corporation Has Current Assets of $1600000 and Current Liabilities

question 40

Multiple Choice

Mitchell Corporation has current assets of $1600000 and current liabilities of $750000.If they issue $200000 of new stock what will their new current ratio be?

• A)2.4:1
• B)1.9:1
• C)1.7:1
• D)2.13:1

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Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.

Organic Compound

A chemical compound that contains carbon atoms bonded to hydrogen atoms and often other elements, found in all living organisms.

Microbes

Microscopic organisms, including bacteria, viruses, fungi, and protozoa, some of which can cause disease.

Peptidoglycan

A polymer consisting of sugars and amino acids that forms a mesh-like layer outside the plasma membrane of most bacteria, providing structural support and shape.